RED AVENUE NEW MATERIALS (603650.SH): Passes HKEX Listing Hearing with Haitong International as Sole Sponsor

NewTimeSpace News: On 16 September 2026, Red Avenue New Materials Group Co., Ltd. (603650.SH) updated its Post Hearing Information Pack, meaning that its application for the issue of overseas-listed shares (H shares) and listing on the Main Board of The Stock Exchange of Hong Kong Limited has passed the listing hearing, with Haitong International acting as sole sponsor. We are a comprehensive new materials provider in the PRC, primarily engaged in the R&D, production, marketing, sales and distribution of new materials. According to Frost & Sullivan, "new materials" is an industry term referring to materials that are newly developed or improved from traditional materials, featuring enhanced performance or specific functional properties. During the Track Record Period, our principal businesses comprised three segments, namely rubber additives for tyres and other chemical products, electronic materials and fully biodegradable materials. According to the Frost & Sullivan Report, we ranked first in sales revenue in both the global and PRC phenolic resins rubber additives for tyres markets in FY2025 with a market share of 41.4% and 45.9%, respectively. With respect to electronic materials, we ranked first, in terms of sales revenue, among local suppliers in both the PRC semiconductor photoresist market and the PRC thin-film transistor (TFT) array photoresist market in FY2025 with a market share of 5.8% and 26.2%, respectively.

Our history can be traced back to 1999 when we commenced our operations in the international trading of chemical materials for tyres. Leveraging on our industry experience, we subsequently expanded upstream by establishing our production bases and have since developed into a platform enterprise integrating R&D, manufacturing and sales functions. In 2018, we successfully listed on the Shanghai Stock Exchange. Building on our accumulated technological capabilities and industry experience, we have continued to expand both horizontally and vertically along the industry value chain, gradually expanding into the electronic materials segments through strategic investments and acquisitions and tapping into the fully biodegradable materials sector by developing products relating to PBAT.

We have established a customer base globally covering industry leading players in the automobile tyres, semiconductors and display panels industries, and we maintain long-term and stable relationships with our major customers. Our products have passed the certification and/or gained recognition from our customers. In respect of our rubber additives for tyres customers, we have established ongoing business relationships with numerous well-known domestic and overseas tyre manufacturers, covering the world's top 20 tyre manufacturers, which together account for over 70% of the market share of the global tyre industry in 2025. For our electronic materials segment, we have also established business relationships with semiconductors and display panel manufacturers with significant market positions in their respective sectors, covering various leading 8- and 12-inches wafer fabrication manufacturers in the PRC. During the Track Record Period, our revenue was primarily derived from the PRC, while we have been actively expanding our overseas markets, with revenue generated from overseas sales accounting for approximately 18.7%, 19.0%, 18.5% and 17.8% of our total revenue for FY2023, FY2024, FY2025 and 6M2026, respectively. We mainly supply our products to downstream customers through direct sales, which accounted for approximately 91.4%, 91.3%, 91.1% and 91.6% of our revenue in the respective periods; under such a direct sales model, we are able to maintain close working relationships with our customers and develop an in-depth understanding of their operational requirements and preferences, which enables us to respond promptly to their needs and strengthen our customer relationships.

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